Employer market power should be considered in the government's consultation on zero-hours contracts, according to independent assessors working for the government.
Employer market power should be considered in the government’s consultation on zero-hours contracts, according to independent assessors working for the government.
The Regulatory Policy Committee (RPC), which was set up by the government to scrutinise evidence for regulations, gave the government’s zero-hours employment contracts impact assessment an “amber” rating, meaning it was fit for purpose.
But it highlighted three areas where it felt the government should provide further information or consider extra details.
As HR Legal Service reports,
“The RPC identified the impact assessment had failed to consider the market power of employers over employees as a reason for government intervention.
“Its report stated: ‘If employers did not have market power, then employees – if they wished – would presumably, for example, be able to negotiate a move to guaranteed hours contracts without government intervention.
“This might also explain why employees with zero-hours contracts accept clauses like exclusivity which disadvantage them.’”
The report also recommended that the government should provide more data about the distribution of zero-hours contracts used by private and public sectors.
And the RPC suggested that before the coalition makes a decision on zero-hours contract legislation it should provide estimates of the possible impacts.
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